Taking The Reins of a Founder-Led Business It's a far from uncommon scenario: when a founder-led business is entering a new chapter, it may turn to a new CEO to lead it through its next phase.

By Lisa Haycox Edited by Patricia Cullen

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media.

Explore Learning
Lisa Haycox, CEO of Explore Learning

Sometimes this is because the skills required to lead a startup are fundamentally different from those needed for a scaling or mature company. A founder spends so much time in the weeds of the business, involved in every single detail of its creation, that it can become incredibly difficult to step back and focus on the bigger picture. At other times, the business may be undergoing a period of transformation and sees significant benefits from having a fresh perspective to help unlock new growth opportunities.

In my case, it was the latter. I first joined Explore Learning in 2002 as a tutor and subsequently held several senior roles within the company. Most recently, this was as Chief Operating Officer (COO), where I led Explore Learning's digital transformation during the COVID-19 pandemic. In April 2025, I stepped into the role of CEO, succeeding Explore Learning's founder, Bill Mills, with a mandate to accelerate the company's evolution towards a hybrid model that blends the expertise of our educators with the power of personalised technology.

Looking back six months later, the transition to a new CEO felt remarkably smooth. Yet, the prospect of passing the reins of a founder-led business is one that's usually met with dread for all those involved. It presents a complex mix of emotional and logistical factors that can make it an incredibly difficult period for a company, despite its sound strategic objectives. So, how did we ensure a smooth transition?

Understanding The 'Why'
First and foremost, we were completely clear about the purpose of this change. Both the business's founder and I understood that the business needed someone to inject the fresh energy required to build on its success to date. When the founder and the new CEO are aligned on the motivations for the transition, they can work towards this shared goal in tandem. Some businesses may choose to bring in outside talent to lead their next phase. It offers clear advantages: a totally unbiased perspective and the ability to assess the business objectively, making difficult decisions that an internal leader may struggle with.

What a business needs at pivotal moments is leadership with a deep, lived understanding of its purpose and the courage to evolve it for the future. After 20 years at Explore Learning, I knew that while our core mission endures, how we deliver on it must continually advance. It takes a careful balancing act of continuing to honour the company's past while also being bold about the changes necessary to take it to new successes. A mutual understanding of this builds the right foundations for an effective transition to a new CEO.

Planning Ahead
I'd worked alongside Bill for 20 years and recognised him as a true visionary in the education sector, determined to have a transformative impact on children's access to the benefits of great education. When a founder has built a business on such a strong and distinctive vision, entrusting its next chapter to new leadership is both a defining moment and a leap of faith.

Yet, during the five years I spent driving the company's digital transformation forward, I was given the space to grow the business in partnership with its founder. The reins were handed to me gradually, rather than assuming them all at once when I became CEO. By the time I stepped into the role, I felt as though Explore Learning was truly my business to grow, which made a significant difference in the impact I was able to have.

We had extremely transparent conversations about the future of the business, which proved crucial to maintaining stability throughout the transition and ensuring clarity on the business's direction. It also means that senior stakeholders become familiar with the incoming CEO ahead of time, preserving much-needed trust in the company's future.

A New Set of Lenses
Transitioning from COO to CEO requires a deliberate shift in approach, one that extends beyond simply taking over from the founder. You have the see the business from a completely new set of lenses. As COO, the focus is on execution, driving delivery, managing operations, and ensuring priorities are met. Stepping into the CEO role requires a fundamental shift from managing performance to shaping direction. It's about creating the conditions for growth, empowering others to run the business while you concentrate on scaling it, unlocking new value, and positioning the organisation for its next stage of evolution.

One of the most valuable things I did to prepare for this shift was to seek a mentor. I worked with a very successful female CEO for 18 months leading up to the transition. She posed a crucial question that guided my preparation: 'How do you show up as CEO?' This mentorship helped me understand and prepare for the new expectations and demands of the role, allowing me to approach the transition with confidence.

6 months later
Since taking on the role of CEO, Bill has remained on the board as Founder Director and continues to offer advice and guidance informed by his nearly 25 years of experience leading the company from its inception. Moving from founder-led to new leadership is a pivotal moment for any business. When anchored in trust and a shared vision, it becomes a powerful platform for growth, driven by a clear sense of purpose and long-term ambition.

Lisa Haycox

CEO of Explore Learning

Lisa Haycox is CEO of Explore Learning
Money & Finance

Founders Obsess Over Cash Flow — But There's a Threat That's Even More Dangerous

There's a silent business risk every entrepreneur underestimates, and it can shut you down faster than a cash crunch.

Innovation

It's Time to Rethink Research and Development. Here's What Must Change.

R&D can't live in a lab anymore. Today's leaders fuse science, strategy, sustainability and people to turn discovery into real-world value.

Fundraising

4 Trends In Fundraising That Will Impact the Future of Philanthropy

Increasing the success of your nonprofit requires you to adapt to changes.

Business News

Still Debating a 9-to-5 vs. Side Hustle? That's the Wrong Question to Ask

In today's uncertain job market, relying on a single income stream can feel risky — that's why more professionals are embracing a hybrid career.

Health & Wellness

10 Habits That Will Completely Transform Your Life and Business in 2026

The best habits aren't about optimization. They're about sustainability, resilience and showing up as the healthiest, happiest version of you

Business News

Walmart Sales Are Up. Here's Why That Matters.

New quarterly results show Walmart winning in a holiday season many analysts expect to be soft.